The BPO Industry Employees Network (BIEN)-Cebu warned that artificial intelligence (AI)-driven investments could increase job insecurity among workers if companies prioritize automation over protecting employment.
The labor group issued the warning after Mayor Nestor Archival Sr. expressed support for preparing Cebu City for AI-related industries and exploring opportunities linked to the U.S.-led Pax Silica initiative.
BIEN-Cebu president Kyle Enero said AI itself is not the concern but the way companies use the technology, particularly when it replaces human workers in business operations.
“Artificial intelligence itself is not the problem. The problem is how it is being used. Today, AI is increasingly being utilized by the IT-BPM industry to automate work and reduce jobs,” Enero said.
The group said AI adoption is already affecting the business process outsourcing (BPO) industry, where some customer service functions are being automated as foreign clients integrate AI tools into their operations.
BIEN-Cebu warned that Cebu should avoid a development model where workers remain vulnerable to decisions made by foreign companies.
The group said AI-related investments should not replicate conditions in some export processing zones, where employment may be affected when investors move operations to areas with lower labor costs.
Enero also raised concerns over the possible impact of large-scale AI infrastructure on Cebu’s electricity and water supply.
The labor group noted that Cebu City continues to face challenges involving utility reliability and increasing costs, questioning whether additional demand from AI facilities could further strain public resources.
BIEN-Cebu said discussions on AI development should include workers’ concerns and ensure that technological advancement also creates secure and sustainable employment opportunities.
Archival earlier said the city is preparing its workforce for AI adoption through training programs and partnerships with government agencies, including the Department of Science and Technology (DOST).
The mayor said city employees are being encouraged to participate in AI seminars, while returning overseas Filipino workers have also received AI-related training through Technical Education and Skills Development Authority (TESDA)-accredited programs.
The city’s AI push followed the Board of Investments (BOI) roadshow in Cebu, where artificial intelligence, semiconductors, electronics, and advanced research were identified as priority investment areas under the 2026-2028 Strategic Investment Priority Plan.
Pax Silica is a proposed 1,620-hectare AI and advanced manufacturing hub in New Clark City, Tarlac, which the national government projects could attract between $40 billion and $70 billion in investments and generate up to 190,000 jobs.
Critics, however, have raised concerns over the project’s effects on electricity and water demand, as well as the number of long-term jobs that large AI facilities can provide after construction.
Photo courtesy of Nikkei Asia
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